Abstract
Purpose: This study examined the effects of external financing on technology investment quality of listed manufacturing firms in Nigeria. Design/Methodology/Approach: The study employed ex-post facto research design. 44 listed manufacturing firms on NGX as at 31st December, 2023 form the study population while 43 firms were selected as the sample using census sampling technique. Data were collected from annual audited financial reports and subjected to multiple regression analysis. Findings: The findings from the analysis revealed that long term debt has positive significant effect on research and development but insignificant negative effect on return on investment and operational efficiency. Also, it was found that short term debt has positive significant effect on return on investment but negative insignificant effect on operational efficiency and research and development. Practical Implication: The study concluded that finance from short term debt is crucial for manufacturing firms to earn optimum returns from their innovative investment. It is therefore recommended that management of manufacturing firms strategically align their external finances with investment in capital technology. Originality/Value: The originality of this study is such that, it may emerge as one of the pioneer studies to investigate the effect of external financing on the quality of technological investment within the Nigerian manufacturing sector.
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